CO129-542-1 China- traffic in arms 31-10-1932 - 9-2-1934 — Page 99

imported into Hong Kong on consignment".

In the

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interests of British trade the Board find themselves

entirely in sympathy with the Governor's view that Hong Kong should be used as a showroom and depôt for the

wares of British aircraft manufacturers, and they see no

reason why similar facilities should not be afforded to

British manufacturers of other kinds of war material,

e. g. tanks.

Subject to the views of the Foreign Office

and the Service Departments, to whom copies of this letter

have been sent, I am therefore to suggest that unless

Secretary Sir Philip Cunliffe-Lister sees any objection

licences should in future be issued for the exportation

of reasonable quantities of arms etc. to reputable

consignees in Hong Kong on consignment". Before the

licences were issued the Board would propose to seek the

advice of the Foreign Office and the appropriate Service

Departments as well as of your Department. In addition,

the Board would propose to obtain in every case a written

assurance from the exporters in this country that the arms

would not be re-exported from Hong Kong to any destination

without the written consent of the Government of the

Colony.

This procedure ought effectively to prevent any